Since the end of World War II, there have been currencies around the world pegged to the US dollar. Now a payment company called Circle, reportedly backed by Goldman Sachs, is rolling out a new cryptocurrency pegged to the US dollar. This Fintech company Circle is looking to make a new and faster, digital version of the US dollar.
Now that investors have shown strong interest, Circle is one of the most well-funded start-ups – names such as Goldman Sachs and Baidu were mentioned. Despite some critics saying that cryptocurrencies can`t be used as a means of payment because their value changes so often, well, what about a peg to the US currency?
In this new system, Circle customers will be required to hold $1 for every USD Coin, thus keeping this digital currency in mirror form of the greenback. These types of coins are now called stable coins in the world of crypto and will likely be catching on in the future.
Also, note that the framework for the coin is open sourced so the number of developers involved in any given project is in now way limited. The USD Coin is being run on the ethereum platform but there might be others participating in the future.